Gold backs off 1-year low after Trump hits Fed for raising rates
Gold backed off a one-year low after U.S. President Donald Trump said he did not approve of the Federal Reserve raising interest rates again in an interview with CNBC.
In response to Trump's comments, the White House released a statement saying the president would not interfere with the Fed's decisions.
Still, spot gold was down 0.26 percent at $1,223.19 an ounce. The yellow metal slipped to its lowest since July last year at $1,210.70 earlier in the session. U.S. gold futures for August delivery settled down $3.90 at $1,224.
In an interview with CNBC, Trump said that although the Fed's Jerome Powell was a "good man," he disagreed with additional rate hikes, saying they would hamper U.S. economic growth.
“I’m not thrilled,” he told CNBC's Joe Kernen in an interview to air in full Friday starting at 6 am. “Because we go up and every time you go up they want to raise rates again. I don't really — I am not happy about it. But at the same time I’m letting them do what they feel is best.”
In a statement to CNBC, the White House said: “Of course the President respects the independence of the Fed. As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions...The President’s views on interest rates are well known and his comments today are a reiteration of those long held positions, and public comments”
The dollar lost most of its gains on the news, falling from a one-year high.
Spot gold has found a support zone of $1,220-$1,226 per ounce. It may hover above this zone for one more day or bounce towards a resistance at $1,237, Reuters technical analyst Wang Tao said.
Among other precious metals, silver was down 1.27 percent at $15.38, earlier hitting its lowest since last July at $15.29. Platinum was down 0.73 percent at $807.60. In the previous session, it hit an over two-week low of $798.14. Palladium was down 3.66 percent at $873.30.